Virtual Assets as an Object of Civil Rights

Sibilla Buletsa

doi:10.62733/2023.1.11-22

Sibilla Buletsa Doctor of Legal Sciences, Full Professor, Head of the Department, Civil Law and Civil Procedural Law, "Uzhgorod National University," https://orcid.org/0000-0001-9216-0033

DOI: https://doi.org/10.62733/2023.1.11-22

Abstract

This academic article argues that virtual property should be included in the civil rights catalogue as an intangible element. This study examines the metauniverse’s evolution, virtual property markets, legal regulation in the metauniverse across countries, and the potential to improve national legal frameworks in this domain. The author compared virtual property to tangible property and proposed using blockchain-based smart contracts to resolve metaverse legal concerns. Legal and practical regulations for virtual property transfers are lacking in the legislative realm. The metaverse and other new business models have raised complex legal issues regarding virtual asset authentication and use. These complex legal issues require further study. Metaverse operators should prioritise a thorough protection mechanism for users’ virtual property throughout virtual business scenario development. Property value in the metauniverse is non-constant, raising concerns about its stability. The transaction’s result depends on the collective or involved parties’ consensus. Value is determined similarly to how modern culture values collectibles and art. It would be foolish to treat all metaverse items as collections and art. Its impact on the tangible economic structure may be negative. Despite the resolution of metauniverse and medium of trade ownership issues, the challenge of actualizing ownership within the metauniverse will endure. The author examined numerous issues linked to Ukraine’s virtual property legislation. The author also made legislative development recommendations for this domain. The placement of virtual entities inside the Civil Code shall be subject to restrictions with regard to intangible or non-physical entities. This phenomenon arises as a result of the dynamic nature of society, characterised by the presence of societal norms and regulations. The evolution of law has emerged as a viable alternative that aligns with the changing demands of society in different historical periods.